Executive Summary: Astral Q2 FY27 Performance Update

ASTRAL Key Financial Highlights: Revenue: Consolidated revenue from operations grew strongly by 26.1% year-on-year to ₹1,988 crore, driven by volume growth across core segments. Profitability: Consolidated Net Profit declined 5.9% YoY to ₹127 crore, impacted by exceptional items (goodwill impairment of ₹9.5 crore related to US subsidiary Seal It Services Inc.) and margin contraction. Margins: EBITDA increased marginally by 1.6% to ₹261 crore. However, EBITDA margin contracted by 320 basis points to 13.1% from 16.3% in the corresponding quarter last year. Segmental Performance & Outlook: Plumbing (Pipes): Revenue surged 25% YoY to ₹1,398.3 crore, with H1 volume growth of 10%. While Q2 segment EBITDA margin was 17.4%, management expects a full margin recovery in Q3 FY27 after successfully passing on the price hikes for PVC and CPVC products. Astral remains on track for double-digit volume growth guidance for FY27. Adhesives & Paints: Revenue recorded strong growth of 28.6% YoY to ₹590 crore. However, segment EBITDA fell 19.2% to ₹44.7 crore due to elevated raw material costs and a time lag in cost pass-through. The EBITDA margin stood at 10.9% for the quarter. Strategic Initiatives & Corporate Actions: Backward Integration: The 40,000-tonne CPVC resin plant is on schedule for commercial operations by Q4 FY27, with trials expected in the same quarter. This is anticipated to improve market share and margins from FY28 onwards. DSS Acquisition: Astral Chemie acquired a 60% stake in Differentiated & Sustainable Solutions LLP (DSS) effective April 1, 2026, marking an entry into the specialty chemicals segment. Dividend: An interim dividend of ₹1.50 per share (FV ₹1) was approved, with November 13, 2026, as the record date.